McDonald's Announces 'McValue' Program for 2025 to Boost Declining Sales

Core Insights - McDonald's is launching a new value-focused platform called McValue in response to declining customer spending due to high prices [1][2][4] - The McValue platform will include a $5 value meal and a "buy one, add one for $1" promotion, aimed at enhancing customer value perception [2][3][4] - The company has acknowledged that inflation has impacted customer behavior, particularly among lower-income consumers, prompting a shift towards value offerings [4] Summary by Sections New Offerings - McDonald's will introduce the McValue platform in the U.S. on January 7, 2025, featuring the extended $5 value meal and a "buy one, add one for $1" program [2][3] - The "buy one, add one for $1" deal allows customers to purchase select items at full price and add a second item for just $1 [3] Customer Behavior - The fast-food chain has observed a trend of customers reducing their spending on fast food due to rising prices over recent years [1][2] - The company reported that the initial $5 value meal promotion was successful and plans to prioritize value in its offerings moving forward [4] Financial Context - McDonald's is also addressing recent challenges, including an E. coli outbreak linked to its Quarter Pounder burgers, which has affected sales [5] - The company plans to invest approximately $100 million to support stores impacted by the outbreak [5] - Following the announcement of the new value offerings, McDonald's shares remained stable at $288.70, approximately 3% lower than the beginning of the year [5]